Commentary

Jared Dillian
Traders Magazine Online News

Was it Worth It?

In this piece from 10th Man, author Jared Dillian discusses how the ETF revolution is less about ETFs and more about indexing; about how people have come to view stocks less as stocks and more as blobs of stocks.

Traders Poll

Would you feel better if the Chicago Stock Exchange were purchased by U.S. firm or consortium rather than a foreign one?

Yes

73%

No

4%

Doesn't matter to me

23%

Free Site Registration

July 5, 2006

Billion Dollar Securities Savings

By Gregory Bresiger

As previously reported in Traders Magazine (Washington Watch, April), the Securities and Exchange Commission has announced a big Section 31 transaction fee rate cut.

The fee, which is used to pay some of the costs of regulation, is slated to decline from the current $30.70 per million dollars of securities transactions to $15.30 per million this fall, according to SEC officials.

"This is a 50 percent cut and that's huge," said John Giesea, president of the Security Traders Association (STA).

"We're delighted," Giesea added. The STA has been lobbying Congress for years, contending the Section 31 fee generated far more than the costs of regulation. "This is terrific news for investors," said Christopher Cox, chairman of the SEC, in a prepared release, expecting that dealers would pass on savings to investors.

The rate cut becomes effective sometime in October. That's when the SEC is scheduled to receive its new budget for the fiscal year.

The overall saving in the Section 31 rate reduction, along with some registration fee cuts, will come to about $1 billion yearly, according to SEC officials.